Answer all three parts with full steps below to get thumbs up and feedback!!

Donald has planned to buy a building which has 8 offices.

Five of them are rented out at 6240$ each per month.

Two of them at 7200$ each per month.

And one at 14400$ per month.

Donald will lose 15% of the yearly rent to vacancy and collection loss.

There are 2 vending machines installed at two floors bringing 1500$ per month. There is also a laundry that brings 1500$ per month. Donald will have to spend 10% of total income on security yearly, 25% on maintenance and 5% on city taxes. Roof replacement will require 2.5% of yearly income, and doors replacement also requires another 2.5%.

Donald applied for loan, and bank agreed to give but on these terms:

LTV must be 75%

Contract = 30 years at 6.5%

Upfront fees = 3%

To solve:

1) Value of building?

2) Effective gross income multiplier of this building?

3) If monthly mortgage payments are 20,000$, calculate the debt coverage ratio? Would this DCR be acceptable to bank?